Australians turn to local bakeries for comfort amidst rising costs

There is an 8% increase in consumer spending on baked goods in early 2024.


Australians are embracing local bakeries as a source of comfort and indulgence during challenging economic times, according to Canvas8.

The report, titled Why a Luxury Mindset Shift is Driving Sales of Baked Goods, showed an 8% increase in consumer spending on baked goods in early 2024, driven by a preference for affordable luxuries like croissants, lamingtons, and artisanal treats.

Small bakeries are thriving by offering creative, high-quality products and building strong community connections.

“We believe people are willing to spend on baked treats because they appreciate the value of something that brings joy and comfort,” said Felix Goodwin, co-founder of Melbourne’s Kudo Bakery. “That feeling of forging a relationship with your local bakery, of coming each week for a friendly chat and recognition, is key.”

Tom Mitchell, founder of Shadow Bakery in Sydney, also emphasised how bakeries are evolving into hubs of community and relaxation. “Not everyone has the time or means to go out for dinner, but you can still feel like you’re treating yourself when you visit a bakery.”

Bakeries are also increasingly integrating with modern lifestyles, he added. Run clubs, for instance, are making bakery stops a part of their routines, transforming these establishments into social gathering spots.

Social media platforms like Instagram and TikTok are playing a crucial role in bakery visibility. The report noted that 87% of customers discover new eateries through these platforms. “The personal connection and story behind our products influence their decisions, as they know they’re getting something special, not mass-produced," Goodwin said.

He added bakeries should also leverage seasonal menus and limited-time promotions to maintain excitement.

“From high-quality artisanal breads to nostalgic Aussie treats with a modern twist, local bakeries are rising to meet the demands of an increasingly discerning public,” said Nick Morris, UK-based founder and managing director of Canvas8. “By offering affordable luxury, integrating into local community life, and leveraging the power of social media, Australia’s bakeries are not only surviving—they are thriving.”